Using the PEG framework with analyst consensus forward EPS growth of 11.2%, Kenvue Inc. has a fair value of $12.77 based on NTM EPS (FY2026) of $1.14. The current PEG ratio is 1.37.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.2% |
| Adjusted Growth (clamped 8–25%) | 11.2% |
| Fair P/E | 11.2x |
| NTM EPS (FY2026) | $1.14 |
| Fair Value | $12.77 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.76 | — | — |
| FY2026E | $1.14 | +49.9% | 11 |
| FY2027E | $1.21 | +6.4% | 10 |
| FY2028E | $1.30 | +7.6% | 8 |
| FY2029E | $1.36 | +4.4% | 4 |
| FY2030E | $1.29 | -5.1% | 4 |
5Y Forward EPS CAGR: 11.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.1B | $1.10 | — |
| FY2022 | $2.1B | $1.08 | -1.8% |
| FY2023 | $1.7B | $0.87 | -19.4% |
| FY2024 | $1.0B | $0.54 | -37.9% |
| FY2025 | $1.5B | $0.76 | +40.7% |
4Y Historical EPS CAGR: -8.8%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.